Carlyle buys TCW from Societe General in major deal

PE firm adds asset manager to its growing portfolio; capital requirements prompt sale by Societe Generale
JUN 14, 2012
By  John Goff
Carlyle Group LP (CG) agreed to buy TCW Group Inc. from Societe Generale SA (GLE) in a deal that will give TCW's management and employees a 40 percent stake. Carlyle will fund the purchase of the $127 billion money manager through two of its private-equity funds and with money from TCW's management, according to a joint statement today from the Washington-based private-equity firm and the Los Angeles- based asset manager. Financial terms of the deal weren't disclosed. “TCW is a premier global asset manager that will become even stronger as a free-standing company with increased employee ownership,” Olivier Sarkozy, who heads the Carlyle team that makes investments in financial-services firms, said in the statement. Europe's sovereign-debt crisis has prompted Societe Generale and other banks to bolster capital to comply with new regulations. The Paris-based bank, France's second-largest, agreed to buy 51 percent of TCW in 2001 for about $880 million. TCW in 2009 fired top-ranked bond-fund manager Jeffrey Gundlach, who subsequently started his own firm, DoubleLine Capital LP. David Lippman, formerly head of fixed income at TCW, will become president and chief executive officer of the company, and Marc Stern, who was CEO, will become TCW's chairman. Gundlach, TCW's former chief investment officer, had offered to buy 51 percent of the business for about $350 million in September 2009, valuing the asset manager at about $700 million, according to court documents filed last year. He was dismissed by TCW about three months later. Gundlach's Departure TCW said it would acquire Los Angeles-based Metropolitan West Asset Management on the same day it fired Gundlach, as it sought to replace the manager and his team and add mutual-fund assets. TCW was founded in 1971 by Robert Day, the grandson of Superior Oil Co. founder William Keck, as Trust Company of the West. TCW's clients include corporate and public pension plans, financial institutions, endowments, foundations and high-net- worth investors. The firm also sells mutual funds to individual investors. --Bloomberg News--

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.